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2017 CLA 250 leasing question

wonnie124wonnie124 Member Posts: 4
edited November 2016 in Mercedes-Benz
Hi

This is my first time leasing and I'd appreciate so much for your advise and inputs. 
I am interested in 2017 CLA 2WD with premium package, LED headlamps and smartphone integration. 
I am thinking leasing it with 36mos/10K. I live in southern CA.
1. What would be the MF and residual? 
2. Dealers say MSRP with these options is about $38.000+. 
     How much discounts should I call before talking about the lease, 10%, or 13%? Any dealer cash for NOV? 
3. Is there any discounts for MSD? auto pay?
4. How do I negotiate doc fees? 

Thank you!!!

Comments

  • kyfdxkyfdx Moderator Posts: 236,681
    wonnie124 said:

    Hi

    This is my first time leasing and I'd appreciate so much for your advise and inputs. 
    I am interested in 2017 CLA 2WD with premium package, LED headlamps and smartphone integration. 
    I am thinking leasing it with 36mos/10K. I live in southern CA.
    1. What would be the MF and residual? 
    2. Dealers say MSRP with these options is about $38.000+. 
         How much discounts should I call before talking about the lease, 10%, or 13%? Any dealer cash for NOV? 
    3. Is there any discounts for MSD? auto pay?
    4. How do I negotiate doc fees? 

    Thank you!!!

    .00056 MF and 60% residual.

    No clue on pricing, but I'll guess less than 10% on a 2017 model.
    Autopay should drop the MF to .00046, but MSDs may not be applicable to a subvented rate.
    Don't worry about the doc fee. CA restricts maximum fee to $80.

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  • wonnie124wonnie124 Member Posts: 4
    Thank you
    Do you know MF and residual?
  • kyfdxkyfdx Moderator Posts: 236,681
    wonnie124 said:

    Thank you
    Do you know MF and residual?

    I sure do.. it's the first line in my reply, above.

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  • wonnie124wonnie124 Member Posts: 4
    Thank you
    That is very helpful! 
  • ray1236ray1236 Member Posts: 2
    Hi,

    I had a great 12% discount on MSRP after days of negotiation. I live in South Florida. I moved forward when they said they'd honor the MBUSA promotion of .000312 on 60% residual valid for 10K miles, even for a 12K miles. I am a tier 1 and recurring customer. However, when final offer came, they used MF .00091 and 59% residual, and not the MF and residual from the promotion. Their offer adds up an extra $1,339 ($37/mo) to the total payment. Questions:

    1) What does this promo's statement really mean to the final MF and residual: "Advertised 36 months lease payment based on MSRP of $35,675 less the suggested dealer contribution resulting in a total gross capitalized cost of $34,676." If the MSRP is higher and gross cap cost is lower than promo, shouldn't the dealer still honor the promo's MF/Res.? If not, how to calculate a fair MF and Residual for a higher MSRP and bigger-than-promotion discount car? Should I just ignore the promotion and go with regular MF/res.?

    2) 2nd question for FL folks: My dealer is using $1095 acquisition fee and 7% tax. Is that all right? I thought $795 and 6% is the right numbers.

    Thanks,

    RR

  • kyfdxkyfdx Moderator Posts: 236,681
    ray1236 said:

    Hi,

    I had a great 12% discount on MSRP after days of negotiation. I live in South Florida. I moved forward when they said they'd honor the MBUSA promotion of .000312 on 60% residual valid for 10K miles, even for a 12K miles. I am a tier 1 and recurring customer. However, when final offer came, they used MF .00091 and 59% residual, and not the MF and residual from the promotion. Their offer adds up an extra $1,339 ($37/mo) to the total payment. Questions:

    1) What does this promo's statement really mean to the final MF and residual: "Advertised 36 months lease payment based on MSRP of $35,675 less the suggested dealer contribution resulting in a total gross capitalized cost of $34,676." If the MSRP is higher and gross cap cost is lower than promo, shouldn't the dealer still honor the promo's MF/Res.? If not, how to calculate a fair MF and Residual for a higher MSRP and bigger-than-promotion discount car? Should I just ignore the promotion and go with regular MF/res.?

    2) 2nd question for FL folks: My dealer is using $1095 acquisition fee and 7% tax. Is that all right? I thought $795 and 6% is the right numbers.

    Thanks,

    RR

    Where did you get the ".000312" number? Money factors never extend beyond 5 digits after the decimal point, and that's not the correct money factor.

    .00056 MF is the base number for this month.
    60% residual for 36/10, and 59% for 36/12. (The dealer cannot alter the residual)
    Base acquisition fee is $795, and dealers can mark that up to $1095 for extra profit.

    Tax rate is the tax rate. Check with your local DMV.

    The "promo" is just an advertisement from Mercedes. It's not an offer from the dealer.

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  • ray1236ray1236 Member Posts: 2
    Thank you for the quick response and the Jan/17 MF/Residual. This was helpful. It seems I made a mistake using the promo to negotiate. What I did, I clicked on the offer detail and use the information provided there. For CLA 250 2017 promo until Jan/17, offer details say MSRP = 35,675, gross cap cost = $34,676, Purchase option at lease end = $21,405, total payments = $15,138. That calculates MF = .000312, and residual = 60%. I double checked and it calculates correctly. Since the car I was negotiating had MSRP of $37,895 and dealer gave me a big discount to $33,310, then I understand by your note that promo doesn't apply at all. Thanks. I am still confused why MBUSA provide all this offer details if dealers or customers can't use it. I assume the promo numbers apply if you lease a car with exactly the same MSRP. Am I right?
  • kyfdxkyfdx Moderator Posts: 236,681
    ray1236 said:

    Thank you for the quick response and the Jan/17 MF/Residual. This was helpful. It seems I made a mistake using the promo to negotiate. What I did, I clicked on the offer detail and use the information provided there. For CLA 250 2017 promo until Jan/17, offer details say MSRP = 35,675, gross cap cost = $34,676, Purchase option at lease end = $21,405, total payments = $15,138. That calculates MF = .000312, and residual = 60%. I double checked and it calculates correctly. Since the car I was negotiating had MSRP of $37,895 and dealer gave me a big discount to $33,310, then I understand by your note that promo doesn't apply at all. Thanks. I am still confused why MBUSA provide all this offer details if dealers or customers can't use it. I assume the promo numbers apply if you lease a car with exactly the same MSRP. Am I right?

    You don't use the Gross CAP cost to calculate the lease payment. You use the adjusted CAP cost, subtracting the $2499 CAP cost reduction. ($32,177)

    The MF used in the promo deal is indeed .00056

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